PUBLIC ACT NO.

521

CARRIAGE OF GOODS BY SEA ACT

Section 1. That the provisions of Public Act No. 521 of the 7th Congress of the
United States, approved on April 16, 1936, be accepted, as it is hereby accepted to
be made applicable to all contracts for the carriage of goods by sea to and from
Philippine ports in foreign trade: Provided, that nothing in this Act shall be construed
as repealing any existing provision of the Code of Commerce which is now in force,
or as limiting its application.

Sec. 2. This Act shall take effect upon its approval. (Approved October 22, 1936).
TITLE I

Sec. 1. When used in this Act

(a) The term "carrier" includes the owner or the charterer who enters into a
contract of carriage with a shipper.

(b) The term "contract of carriage" applies only to contracts of carriage by covered
by a bill of lading or any similar document of title, insofar as such document relates
to the carriage of goods by sea, including any bill of lading or any similar document
as aforesaid issued under or pursuant to a character party from the moment at
which such bill of lading or similar document of title regulates the relations between
a carrier and a holder of the same.

(c) The term "goods" includes goods, wares, merchandise, and articles of every
kind whatsoever, except live animals and cargo which by the contract of carriage is
stated as being carried on deck and is so carried.

(d) The term "ship" means any vessel used for the carriage of goods by sea.

(e) The term "carriage of goods" covers the period from the time when the goods
are loaded to the time when they are discharged from the ship.

RISKS

Sec. 2. Subject to the provisions of Section 6, under every contract of carriage of

goods by sea, the carrier in relation to the loading, handling, stowage, carriage,
custody, care, and discharge of such goods shall be subject to the responsibilities
and liabilities and entitled to the rights and immunities hereinafter set forth.
RESPONSIBILITIES AND LIABILITIES

Sec. 3. (1) The carrier shall be bound before and at the beginning of the voyage to
exercise due diligence to

(a) Make the ship seaworthy;

(b) Properly man,equip, and supply the ship;

(c) Make the holds, refrigerating and cooling chambers, and all other parts of the
ship in which goods are carried, fit and safe for their reception, carriage, and
preservation.

(2) The carrier shall properly and carefully load, handle, stow, carry, keep, care
for,and discharge the goods carried.

(3) After receiving the goods into his carrier, or the master or agent of the carrier,
shall, on demand of the shipper, issue to the shipper a bill of lading showing among
other things chanrobles virtual law library

(a) The loading marks necessary for identification of the goods as the same are
furnished in writing by the shipper before the loading of such goods starts, provided
such marksare stamped or otherwise shown clearly upon the goods if uncovered,in
such a manner as should ordinarily remain legible until the end of the
voyage. chanrobles virtual law library

(b) Either the number of packages or pieces, or the quantity or weight, as the
casemay be, as furnished in writing by the shipper.

(c) The apparent order and conditions of the goods: Provided, that no carrier,
master, or agent of the carrier, shall be bound to state or show in the bill of lading
any marks, number, quantity, or weight which he has reasonable ground for
suspecting not accurately to represent the good actually received or which he has
had no reasonable means of checking. chanrobles virtual law library

(4) Such a bill of lading shall be prima facie evidence of the receipt by the carrier of
the goods as therein described in accordance with paragraphs (3) (a), (b), and (c),
of this section: (The rest of the provision is not applicable to the Philippines).

(5) The shipper shall be deemed to have guaranteed to the carrier the accuracy at
the time of shipment of the marks, number, quantity, and weight, as furnished by
him; and the shipper shall indemnify the carrier against all loss, damages, and
expenses arising or resulting from inaccuracies in such particulars. The right of the
carrier to such indemnity shall in no way limit his responsibility and liability under
the contract of carriage to any person other than the shipper. chanrobles virtual law
library

(6) Unless notice or loss or damage and the general nature of such loss or damage
by given in writing to the carrier or his agent at the port of discharge or at the time
of the removal of the goods into the custody of the person entitled to delivery
thereof under the contract of carriage, such removal shall be prima facie evidence
of the delivery by the carrier of the goods as described in the bill of lading. If the
loss or damage is not apparent, the notice must be given within three days of the
delivery. chanrobles virtual law library

Said notice of loss or damage may be endorsed upon the receipt for the goods
given by the person taking delivery thereof.

The notice in writing need not be given if the state of the goods has at the time of
their receipt been the subject of joint survey or inspection.

In any event the carrier and the ship shall be discharged from all liability in respect
of loss or damage unless suit is brought within one year after delivery of the goods
or the date when the goods should have been delivered: Provided, that, if a notice
of loss or damage, either apparent or concealed, is not given as provided for in this
section, that fact shall not affect or prejudice the right of the shipper to bring suit
within one year after the delivery of the goods or the date when the goods should
have been delivered.

In the case of any actual or apprehended loss or damage, the carrier and the
receiver shall give all reasonable facilities to each other for inspecting and tallying
the goods. chanrobles virtual law library

(7) After the goods are loaded the bill of lading to be issued by the carrier, master,
or agent of the carrier to the shipper shall if the shipper so demands, be a "shipped"
bill of lading: Provided, that if the shipper shall have previously taken up any
document of title to such goods, he shall surrender the same as against the issue of
the "shipped" bill of lading, but at the option of the carrier such document of title
may be noted at the port of shipment by the carrier, master, or agent with the
name or names of the ship or ships upon which the goods have been shipped and
the date or dates of shipment, and when so noted the same shall for the purpose of
this section be deemed to constitute a "shipped" bill of lading.

(8) Any clause, covenant, or agreement in a contract of carriage relieving the

carrier of the ship from liability for loss or damage to or in connection with the
goods, arising from negligence, fault, or failure in the duties and obligations provide
in this section or lessening such liability otherwise than as provided in this Act, shall
be null and void and of no effect. A benefit of insurance in favor of the carrier, or
similar clause, shall be deemed to be a clause relieving the carrier from liability.

RIGHTS AND IMMUNITIES

Sec. 4. (1) Neither the carrier nor the ship shall be liable for loss or damage arising
or resulting from unseaworthiness unless caused by want of due diligence on the
part of the carrier to make the ship seaworthy and to secure that the ship is
properly manned, equipped, and supplied, and to make the holds, refrigerating and
cooling chambers, and all other parts of the ship in which goods are carried fit and
safe for their reception, carriage, and preservation, in accordance with the
provisions of paragraph (1) of Section (3). Whenever loss or damage has resulted
from unseaworthiness, the burden of proving the exercise of due diligence shall be
on the carrier or other person claiming exemption under this section. chanrobles
virtual law library

(2) Neither the carrier nor the ship shall be responsible for loss or damage arising
or resulting from

(a) Act, neglect, or default of the master, mariner, pilot, or the servants of the
carrier in the navigation or in the management of the ship;

(b) Fire, unless caused by the actual fault or privity of the carrier; chanrobles virtual
law library

(c) Perils, dangers, and accidents of the sea or other navigable water; chanrobles
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(d) Act of God; chanrobles virtual law library

(e) Act of war; chanrobles virtual law library

(f) Act of public enemies;

(g) Arrest or restraint of princes, rulers, or people, or seizure under legal process;

(h) Quarantine restrictions; chanrobles virtual law library

(i) Act or omission of the shipper or owner of the goods, his agent or
representative; chanrobles virtual law library

(j) Strikes or lockouts or stoppage or restraint of labor from whatever cause,

whether partial or general: Provided, that nothing herein contained shall be
construed to relieve a carrier from responsibility for the carrier's own
acts; chanrobles virtual law library

(k) Riotsand civil commotions; chanrobles virtual law library

(l) Saving or attempting to save life or property at sea; chanrobles virtual law
library

(m) Wastage in bulk or weight or any other loss or damage arising from inherent
defect, quality, or vice of the goods;

(n) Insufficiency or packing;

(o) Insufficiency or inadequacy of marks; chanrobles virtual law library

(p) Latent defects not discoverable by due diligence; andchanrobles virtual law
library

(q) Any other cause arising without the actual fault and privity of the carrier and
without the fault or neglect of the agents or servants of the carrier, but the burden
of proof shall be on the person claiming the benefit of this exception to show that
neither the actual fault or privity of the carrier nor the fault or neglect of the agents
or servants of the carrier contributed to the loss or damage.

(3) The shipper shall not be responsible for loss or damage sustained by the carrier
or the ship arising or resulting from any cause without the act, or neglect of the
shipper, his agents, or his servants. chanrobles virtual law library

(4) Any deviation in saving or attempting to save life or property at sea, or any
reasonable deviation shall not be deemed to be an infringement or breach or this
Act or of the contract of carriage, and carrier shall not be liable for any loss or
damage resulting therefrom: Provided, however, that if the deviation is for the
purpose of loading or unloading cargo or passengers it shall, prima facie, be
regarded as unreasonable.chanrobles virtual law library

(5) Neither the carrier nor the ship shall in any event be or become liable for any
loss or damage to or in connection with the transportation of goods in an amount
exceeding $500 per package of lawful money of the United States, or in case of
goods not shipped in packages, per customary freight unit, or the equivalent of that
sum in other currency, unless the nature and value of such goods have been
declared by the shipper before shipment and inserted in the bill of lading. This
declaration, if embodied in the bill of lading, shall be prima facie evidence, but shall
not be conclusive on the carrier. chanrobles virtual law library

By agreement between the carrier, master or agent of the carrier, and the shipper
another maximum amount than that mentioned in this paragraph may be fixed:
Provided, that such maximum shall not be less than the figure above named. In no
event shall the carrier be liable for more than the amount of damage actually
sustained. chanrobles virtual law library

Neither the carrier nor the ship shall be responsible in any event for loss damage to
or in connection with the transportation of the goods if the nature or value thereof
has been knowingly and fraudulently misstated by the shipper in the bill of
lading.chanrobles virtual law library

(6) Goods of an inflammable, explosive, or dangerous nature to the shipment

whereof, the carrier, master or agent of the carrier, has not consented with
knowledge of their nature and character, may at any time before discharge be
landed at any place or destroyed or rendered innocuous by the carrier without
compensation, and the shipper of such goods shall be liable for all damages and
expenses directly or indirectly arising out of or resulting from such shipment. If any
such goods shipped with such knowledge and consent shall become a danger to the
ship or cargo, they may in like manner be landed at any place, or destroyed or
rendered innocuous by the carrier without liability on the part of the carrier except
to general average if any.chanrobles virtual law library

SURRENDER OF RIGHTS AND IMMUNITIES AND INCREASE OF RESPONSIBILITIES AND

LIABILITIES

Sec. 5. A carrier shall be at liberty to surrender in whole or in part all or any of his
rights and immunities or to increase any of his responsibilities and liabilities under
this Act, provided such surrender or increase shall be embodied in the bill of lading
issued to the shipper.

The provisions of this Act shall not be applicable to charter parties; but if bills of
lading are issued in the case of a ship under a charter party, they shall comply with
the terms of this Act. Nothing in this Act shall be held to prevent the insertion in a
bill of lading of any lawful provisions regarding general average. chanrobles virtual
law library

SPECIAL CONDITIONS

Sec. 6. Notwithstanding the provisions of the preceding section, a carrier, master

or agent of the carrier, and a shipper shall, in regard to any particular goods be at
liberty to enter into any agreement in any terms as to the responsibility and liability
of the carrier for such goods, and as to the rights and immunities of the carrier in
respect to such goods, or his obligation to seaworthiness, (so far as the stipulation
regarding seaworthiness is contrary to public policy), or the care or diligence of his
servants or agents in regard to the loading, handling, stowage, carriage, custody,
care and discharge of the goods carried by sea; provided, that in this case no bill of
lading has been or shall be issued and that the terms agreed shall be a non-
negotiable document and shall be marked as such. chanrobles virtual law library

Any agreement so entered into shall have full legal effect: Provided, that this section
shall not apply to ordinary commercial shipments made in the ordinary course of
trade but only to other shipments where the character or condition of the property
to be carried or the circumstances, terms and conditions under which the carriage is
to be performed are such as reasonably to justify a special agreement.

Sec. 7. Nothing contained in this Act shall prevent a carrier or a shipper from
entering into any agreement, stipulation, condition, reservation, or exemption as to
the responsibility and liability of the carrier or the ship for the loss or damage to or
in connection with the custody and care and handling of goods prior to the loading
on and subsequent to the discharge from the ship on which the goods are carried by
sea. chanrobles virtual law library

Sec. 8. The provisions of this Act shall not affect the rights and obligations of the
carrier under the provisions of the Shipping Act, 1916, or under the provisions of
Sections 4281 to 4292, inclusive, of the Revised Statutes of the United States, or of
any amendments thereto, or under the provisions of any other enactment for the
time being in force relating to the limitation of the liability of the owners of seagoing
vessels. chanrobles virtual law library

TITLE II

Sec. 9. Nothing contained in this Act shall be construed as permitting a common

carrier by water to discriminate between competing shippers similarly placed in
time and circumstances, either (a) with respect to their right to demand and receive
bills of lading subject to the provisions of this Act; or (b) when issuing such bills of
lading either in the surrender of any of the carrier's rights and immunities or in the
increase of any of the carrier's responsibilities and liabilities pursuant to Section 5,
Title I, of this Act; (c) in any other way prohibited by the Shipping Act, 1916, as
amended. chanrobles virtual law library

Sec. 10. (Not applicable to the Philippines.) chanrobles virtual law library

Sec. 11. When under the custom of any trade the weight of any bulk cargo
inserted in the bill of lading is a weight ascertained or accepted by a third party
other than the carrier or the shipper and the fact that the weight as ascertained or
accepted is stated in the bill of lading, then notwithstanding anything in this Act, the
bill of lading shall not be deemed to be prima facie evidence against the carrier of
the receipt of goods of the weight so inserted in the bills of lading, and the accuracy
thereof at the time of shipment shall not be deemed to have been guaranteed by
the shipper. chanrobles virtual law library

Sec. 12. (Not applicable to the Philippines.) chanrobles virtual law library

Sec. 13. This Act shall apply to all contracts for carriage of goods by seas to or
from ports of the United States in foreign trade. As used in this Act the term "United
States" includes its districts, territories, and possessions: Provided, however, that
the Philippine Legislature may by law exclude its application to transportation to or
from ports of the Philippine Islands. The term "foreign trade" means the
transportation of goods between the ports of the United States and ports of foreign
countries. Nothing in this Act shall be held to apply to contracts for carriage of
goods by sea between any port of the United States or its possessions and any
other port of the United States or its possessions: Provided, however, that any bill of
lading or similar document of the title which is evidence of a contract for the
carriage of goods by sea between such ports, containing an express statement that
it shall be subject to the provisions of this Act; shall be subjected hereto as fully as if
subject hereto by the express provisions of this Act: Provided, further, that every bill
of lading or similar document of title which is evidence of a contract for the carriage
of goods by sea from ports of the United States in foreign trade, shall contain a
statement that it shall have effect subject to the provisions of this Act. chanrobles
virtual law library

Sec. 14. Upon the certification of the Secretary of Commerce that the foreign
commerce of the United States in its competition with that of foreign nations is
prejudiced by the provisions, or any of them, of the Title I of this Act, or by the laws
of any foreign country or countries relating to the carriage of goods by sea, the
President of the United States may, from time to time by proclamation, suspend any
or all provisions of Title I of this Act for such periods of time or indefinitely as may
be designated in the proclamation. The President may at any time rescind such
suspension of Title I hereof, and any provisions thereof which may have been
suspended shall thereby be reinstated and again apply to contracts thereafter made
for carriage of goods by sea. Any proclamation of suspension or rescission of any
such suspension shall take effect on the date named therein, which date shall be
not less than ten days from the issue of the proclamation.

Any contract for the carriage of goods by sea, subject to the provisions of this Act,
effective during any period when Title I hereof, or any part thereof, is suspended,
shall be subject to all provisions of law now or hereafter applicable to that part of
Title I which may have thus been suspended. chanrobles virtual law library

Sec. 15. This Act shall take effect ninety days after the date of its approval; but
nothing in this Act shall apply during a period not to exceed one year following its
approval to any contract for the carriage of goods by sea, made before the date on
which this Act is approved nor to any bill of lading or similar document of title
issued, whether before or after such date of approval in pursuance of any such
contract as aforesaid. chanrobles virtual law library

Sec. 16. This Act may be cited as the "Carriage of Goods by Sea Act." chanrobles
virtual law library

Approved: April 16, 1936